UK financial watchdog consults on changes for closed ended investment funds

The Financial Conduct Authority (FCA) has opened a consultation on changes to the UK Listing Rules for closed ended investment funds, centred on conflicts of interest.

These funds have a dual role as quoted companies and investment vehicles.

Investors elect the board, and the board then selects and supervises the investment manager tasked with generating returns.

In this set-up, shareholder rights are a core feature because they allow investors to challenge boards and shape major decisions.

The review was flagged in March as part of the regulator's wider work on the UK Listing Rules.

It examines whether the framework "support strong shareholder rights and effective management of conflicts of interest in a range of potential future scenarios".

The FCA had been testing how the rules might function in a variety of hypothetical cases.

After that exercise, the regulator said it had found a "small number of targeted and proportionate adjustments" needed so the rules work consistently across relevant situations.

One proposal would extend to newly appointed investment managers the same safeguards that already apply to arrangements involving an existing manager, covering changes to

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/uk-financial-watchdog-consults-changes-114552357.html)